{"id":2090,"date":"2016-06-27T05:16:56","date_gmt":"2016-06-27T05:16:56","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=2090"},"modified":"2021-07-07T12:52:25","modified_gmt":"2021-07-07T12:52:25","slug":"corporate-and-professional-update-june-18-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-june-18-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE JUNE 18, 2016"},"content":{"rendered":"

Today updates:<\/span><\/strong><\/p>\n

\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; corporate updates<\/figcaption><\/figure>\n

DIRECT TAX:<\/span><\/p>\n

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Income Tax : The initiation of the proceedings u\/s 153C in the absence of recording of the satisfaction by the AO of the person searched was held to be invalid and accordingly the assessment framed u\/s 153C of the Act is quashed –\u00a0Bhawna Bhalla Vs. ACIT, CC-21, New Delhi & DCIT, CC-21, New Delhi Vs. Bhawna Bhall<\/p>\n

Income Tax:\u00a0Disallowance made under sec. 14A has to be added back to book profit to compute MAT Haldia Petrochemicals Ltd. v. Joint Commissioner of Income-tax,Range- 12, 3, Kolkata [2016] 70\u00a0taxmann.com\u00a070 (Kolkata – Trib.)<\/p>\n

Income Tax:\u00a0TDS not deductible on web hosting and marketing services procured from US based entity. [DCIT vs. M\/s Matrimony.Com Pvt. Ltd. (ITAT Chennai)].<\/p>\n

Income Tax:\u00a0TDS – \u00a015G\/15H declarations for the period from 01 OCT 2015 to 31 MAR 2016 to be submitted through e-filing portal by 30 JUN 2016 – Notification No.9\/2016.<\/p>\n

Income Tax: Interest awarded under Land Acquisition Act forms part of compensation; not liable to sec. 194A TDS Movaliya Bhikhubhai Balabhai\u00a0v. Income-tax Officer-TDS-1-Surat [2016] 70\u00a0taxmann.com\u00a045 (Gujarat)<\/p>\n

Income Tax : Mere TP addition doesn’t justify levy of penalty if assessee had applied incorrect TP method in good faith Mitsui Prime Advanced Composites India (P.) Ltd.\u00a0v. Deputy Commissioner of Income-tax, Circle- 6 (1), New Delhi [2016] 70\u00a0taxmann.com\u00a0 123 (Delhi – Trib.)<\/p>\n

Income Tax:\u00a0Penalty will be levied u\/s 271C for assessee\u2019s failure to withhold TDS u\/s 194A on interest paid to its sister concerns. Kerala HC opined that the only way assessee could take the benefit of Sec. 273B was by establishing that there was \u201creasonable cause\u201d justifying its failure to comply with Sec. 194A. Kerala High Court<\/p>\n

Income Tax:\u00a0Penalty U\/s 271(1)(c) shall not be imposed if assessing officer at the time of\u00a0initiation of penalty proceedings has not specified whether penalty is initiated for the inaccurate particulars of income or concealment of income.(DCIT\u00a0Vs.\u00a0M\/s Grass Field Farms & Resorts P. Ltd.) ITAT Jaipur<\/p>\n

Income Tax:\u00a0TDS not deductible on web hosting & marketing services procured from US based entity via {DCIT vs. M\/s Matrimony.Com Pvt. Ltd. (ITAT Chennai) }<\/p>\n

Income Tax: ITAT directs TPO to recalculate additions by considering only international transactions instead of total sales Federal Mogul Automotive Products (India) Ltd.\u00a0v. Deputy Commissioner of Income-tax, Circle-11 (1), New Delhi [2016] 70\u00a0taxmann.com\u00a0121 (Delhi – Trib.)<\/p>\n

Income Tax : Works contract services used for maintenance of office equipment are eligible input services Red Hat India (P.) Ltd.\u00a0v. Principal Commissioner, Service Tax, Commissionerate, Pune [2016] 70\u00a0taxmann.com\u00a0132 (Mumbai – CESTAT)<\/p>\n

Utility for Income Declaration Scheme, 2016 released by CBDT :\u00a0 Central Government vide its notification no. 33\/2016 dt. 19th\u00a0May, 2016 has specified\u00a0The Income Declaration Scheme Rules, 2016.\u00a0Utility regarding these forms are now available on Income Tax website. Income Tax:\u00a0Sec. 246A doesn\u2019t allow filing of appeal before CIT(A) against order passed by AO under Sec. 195(2) Deputy Commissioner of Income-tax (International Taxation)-4(2), Mumbai v. Abu Dhabi Ship Building PJSC [2016] 70\u00a0taxmann.com\u00a0224 (Mumbai – Trib.)<\/p>\n

Income Tax Assessee gets enduring benefit from the rights acquired in films and serials and they do not expire on the date of first telecast as contemplated by the assessee – The rights are intangible assets within the meaning of Explanation (iii) to Section 32 and do not fall within the purview of Section 37(1). The assessee is entitled to claim depreciation on same. (Eenadu Television Private Limited. Vs. ACIT, Hyderabad) ITAT Hyderabad<\/p>\n

Income Tax:\u00a0Where assessee, an Indian company, received dividend from a Brazilian company, since assessee was a resident company of India within meaning of article 23 paragraph 3 of DTAA and, Brazilian company had already paid tax on its profits in excess of rate prescribed in paragraph 2 of article 10 of DTAA before distribution of dividend income, such dividend would be exempt from tax in India –\u00a0[2016] 70\u00a0taxmann.com\u00a022 (Kolkata – Trib.)<\/p>\n

Income Tax: Section 147 could not be availed of for purpose of correcting a mistake in assessment order; Assessing Officer could not sit in appeal over decision of his predecessor Assessing Officer, who had examined claim and allowed claim of deduction under section 54EC by taking plea that assessee was eligible for lesser amount –\u00a0[2016] 70\u00a0taxmann.com\u00a072 (Gujarat)<\/p>\n

Income Tax : Official Assignee need not go before the CBDT for waiver of interest payable under Income-tax assessments. The Insolvency Court itself can consider the question of waiver of interest in terms of the power conferred under section 7 of the Presidency Town Insolvency Act and in the light of the provisions of the Income-tax Act –\u00a0[2016] 70\u00a0taxmann.com\u00a0182 (Madras)<\/p>\n

Utility for Income Declaration Scheme, 2016 released by CBDT :\u00a0 Central Government vide its notification no. 33\/2016 dt. 19th\u00a0May, 2016 has specified\u00a0The Income Declaration Scheme Rules, 2016.\u00a0Utility regarding these forms are now available on Income Tax website.<\/p>\n

Income Tax:\u00a0Sec. 246A doesn\u2019t allow filing of appeal before CIT(A) against order passed by AO under Sec. 195(2) Deputy Commissioner of Income-tax (International Taxation)-4(2), Mumbai v. Abu Dhabi Ship Building PJSC [2016] 70\u00a0taxmann.com\u00a0224 (Mumbai – Trib.)<\/p>\n

Income Tax Assessee gets enduring benefit from the rights acquired in films and serials and they do not expire on the date of first telecast as contemplated by the assessee – The rights are intangible assets within the meaning of Explanation (iii) to Section 32 and do not fall within the purview of Section 37(1). The assessee is entitled to claim depreciation on same. (Eenadu Television Private Limited. Vs. ACIT, Hyderabad) ITAT Hyderabad<\/p>\n

Income Tax:\u00a0AO of searched person has to record satisfaction even if he is also the AO of other person under sec. 153C\u00a0 Narsi Creations v. Deputy Commissioner of Income-tax, Central Circle-12, New Delhi
\n[2016] 70\u00a0taxmann.com\u00a0156 (Delhi – Trib.)<\/p>\n

Income Tax: Revenue couldn’t treat taxpayer as BPO if same was categorized as KPO in earlier year on basis of same agreement
\nSNL Financial (India) (P.) Ltd. v. Deputy Commissioner of Income-tax, Cir.8, Ahmedabad [2016] 70\u00a0taxmann.com\u00a0146 (Ahmedabad – Trib.)<\/p>\n

Income Tax : \u00a0Co. outsourcing significant part of its operations can’t be a comparable for a Co. rendering IT enabled services American Express India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle 1(1), New Delhi [2016] 70\u00a0taxmann.com\u00a082 (Delhi – Trib.)\u00a0 Registration u\/s 12AA cannot be denied on town Planning Activities continuing from earlier years [ITO vs. Moradabad Development Authority (ITAT Delhi)].<\/p>\n

INDIRECT TAX:\u00a0<\/span><\/p>\n

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Service tax & custom : CBEC has issued a circular for speedy disbursal of pending refund claims of exporters of service under rule 5 of the CENVAT Credit Rules, 2004 vide\u00a0Circular No. 195\/05\/2016- Service Tax\u00a0dated\u00a015th\u00a0June ,2016.This scheme is applicable only to service tax registrants who are exporters of services, with respect to refund claims under\u00a0rule 5\u00a0of the\u00a0CENVAT Credit Rules, 2004,\u00a0which have been filed on or\u00a0before 31-3-2015, and which have not been disposed of as on the date of the issue of the\u00a0circular dated 10-11-2015<\/p>\n

CBEC has issued a single window project for simplification of procedure in SWIFT for clearance of consignment related to drugs & Cosmetics reg. vide Circular No. 28\/2016- CUS- dated 14th\u00a0June, 2016<\/p>\n

Excise\u00a0 : Whether there will be Eligibility of Cenvat credit of services at their retail outlets from where sales are affected. In the given case No sales are affected at the factory gate but duty is paid at the time of clearance. It was held that since the goods are not sold at the factory gate but are sold at the retail outlets, therefore, by virtue of the express provisions of Section 4(3) (c)(iii) of the Central Excise Act, 1944 the place of removal in the case of appellant will be the retail outlet. Hence cenvat credit will be eligible.(\u00a0M\/s Sports And Leisure Apparel Ltd. Versus Commissioner of Customs, Central Excise And Service Tax-Noida)- 2016 (6) TMI 468- CESTAT ALLAHABAD<\/p>\n

Vat : Delhi value added tax has launched \u201cGood Dealer Reward Scheme\u201d Vide order instruction No.\u00a0F.3 (632)\/Policy\/VAT\/2015\/PF\/363- 69 dated 10.06.2016.\u00a0The objective of the scheme is to acknowledge the efforts of better performing dealers so as to further encourage them to continue their efforts for better tax compliance and also to set examples for other dealers.<\/p>\n

Central Excise:\u00a0SSI Exemption – use of Brand\/Trade mark or others – as long as assignment stands the assessee using the brand name is eligible for the benefit of SSI exemption notification – Tri<\/p>\n

Excise\u00a0 : CBEC has amend the notification No. 214\/86 \u2013 central excise dated 25.03.1986 vide notification No. 24\/2016 dated 14.06.2016 and further it amends the notification No. 67-95- Central Excise \u2013 dated 16.03.1995 vide Notification No. 25\/2016 dated\u00a014.06.2016.In\u00a0this notification they have substituted the word \u201c Free Trade Zone\u201d with \u201cSpecial Economic Zone\u201d<\/p>\n

Central Excise:\u00a0Levy of excise duty on readymade garments and made articles of textiles bearing a brand name or sold under a brand name and having a retail sale price of Rs. 1000 or more \u2013 reg. Circular No. 1031\/19\/2016-CX Dated 14th of June, 2016 F. No. 332\/5\/2016-TRU Dated 14th of June, 2016<\/p>\n

Service tax : No interest can be demanded on time-barred payment of service tax\u00a0 commissioner of Central Excise, Bhopal\u00a0v. Western Coal Fields Ltd.[2016] 70\u00a0 taxmann.com\u00a0133 (New Delhi – CESTAT)<\/p>\n

Service tax : CESTAT grants refund of excess service tax paid on \u2018brokerage\u2019 towards stock-broker services, pursuant to subsequent downward adjustment thereof through credit notes to clients. It Rejected the Revenue\u2019s stand that principle of unjust enrichment applicable to present case since issuance of credit notes not sufficient to establish that tax burden had not been passed onto recipients of service. CESTAT Mumbai<\/p>\n

Custom : Seeks to extend the levy of anti-dumping duty on imports of Pentaerythritol, originating in, or exported from the People\u2019s Republic of China, for a period of one year<\/p>\n

Service tax & custom : CBEC has issued a circular for speedy disbursal of pending refund claims of exporters of service under rule 5 of the CENVAT Credit Rules, 2004 vide\u00a0Circular No. 195\/05\/2016- Service Tax\u00a0dated\u00a015th\u00a0June ,2016.This scheme is applicable only to service tax registrants who are exporters of services, with respect to refund claims under\u00a0rule 5\u00a0of the\u00a0CENVAT Credit Rules, 2004,\u00a0which have been filed on or\u00a0before 31-3-2015, and which have not been disposed of as on the date of the issue of the\u00a0circular dated 10-11-2015<\/p>\n

CBEC has issued a single window project for simplification of procedure in SWIFT for clearance of consignment related to drugs & Cosmetics reg. vide Circular No. 28\/2016- CUS- dated 14th\u00a0June, 2016<\/p>\n

Other updates :<\/span><\/p>\n

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Changes in form 2, 3, 4 & 11 vide Limited Liability Partnership (Second Amendment) Rules 2016<\/p>\n

ICAI:\u00a030 SEP 2016\u00a0is the last date for payment of\u00a0Membership & Certificate of Practice (CoP) Fee for FY 2016-17.<\/p>\n

Threshold limit of PF withdrawal for deduction of tax, raised to Rs. 50,000 from Rs. 30.000\u00a0with effect from 1st June, 2016 vide Finance Act, 2016.<\/p>\n

Net realizable of stock to be taken as value it would fetch on actual sale in future. [ITO vs. M\/s. Mahendra Traders (ITAT Kolkata)].<\/p>\n

A month after India redrew its tax agreement with Mauritius, the government has constituted a working group to examine the \u201cconsequential issues\u201d arising out of the changes. Sebi : The Securities and Exchange Board of India (Sebi) has issued a consultation paper on financial disclosures to be made by the newly-introduced\u00a0Infrastructure Investment Trusts\u00a0(InvITs). Comments have been invited by\u00a0June 28. It has proposed that annual disclosure to\u00a0stock exchanges be on a quarterly basis, not half-yearly as suggested earlier.<\/p>\n

Rbi : The country has a lot of \u201cunmet demands\u201d for bank loans and a lot of gap is still to be filled in the\u00a0banking\u00a0space, Reserve\u00a0Bank of\u00a0India\u00a0Deputy Governor Harun\u00a0Rashid Khan\u00a0has said. \u201cWe have a lot of unmet demands (for bank loans still a lot of gaps to be filled,\u201d Khan said in reply to a question on the central bank\u2019s plan to issue more licences for setting up new banks.<\/p>\n

Sebi : The Securities and Exchange Board of India (Sebi) has issued a consultation paper on financial disclosures to be made by the newly-introduced\u00a0Infrastructure Investment Trusts\u00a0(InvITs). Comments have been invited by\u00a0June 28. It has proposed that annual disclosure to\u00a0stock exchanges be on a quarterly basis, not half-yearly as suggested earlier.<\/p>\n

\u00a0KEY DATES:<\/span><\/p>\n

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